S1rst

Anyone took a mortgage out in the last year or so?

Just wondering, based on recent rates, how much you pay a month, for how long, how much deposit you put down if any, and on what value house.

I realise every case will be different, but im just after a rough idea at the moment. It would also be interesting to see how much the re-payments differ depending on what deposit you put down too.

Cheers

dojj

iTrader: (3)

the last mortgage decrease has seen my payments slashed by a whopping £28

halifax do a variable tracker that is 1/4% below the bank of england base rate which is the best deal for me but shop around because there are so man little thngs you need to get sorted

i've also kept my 10% overpayment for the whole mortgage ammount bit without paying any penalties so i can pay off this amount over the top of the money i'm paying in and won't get penalised, otherwise it's £5.5k if i pay them too much money

and it cost me a grand for soemone to do all the running around, but it's saved me £140 a month for the next 2 years

gingeRS

new mortgages as a general rule of thumb.....you need £500 a month for each 100k you borrow.

so i'll be looking at a £1200 a month mortgage on the flat i'm looking into buying this summer, £280k (£60k down)

2 bedroom

Lambchop

iTrader: (1)

dont wanna piss on your fire but your repayments will be more than 1200 on 220k as my mortgage is bit less and i pay bout that!

dojj

iTrader: (3)

gingeRS
is that intrest only or repayment?
on £180k i'm forking out £1400 a month repayment if i was on the banks prefered rate of 8% but am currently on a 5.5% rate and only fork out just under £1100

i'm no economist but even i can work out that them figures don't stack up right but the money i save goes towards the lump sum at the end of the year

also you should be looking to only be paying 40% of your income towards the mortgage, any more and all the money experts tell you that's a bad thing

gingeRS

it was a rough guestimate as i did the sums a while ago, also cant remember if it was interest only or repayment?

its the reason i sold my cos, so i can start saving though

dojj

iTrader: (3)

£500 / £100k borrowed

if you borrow £280k then you need to multiply your £500 by 5.6 which equals a monthly bill of £2800

if you've put down your £60k into that £280k then you will need to multiply your £500 by 4.4 which equals a repayment of £2200

you will then need to possibly find another job to fund your home purchace

gingeRS

????

Ian M500COS

multiply by 2.8 = £1400 per month for £280k !

dvid

Well my mortgage is £251K and I pay £1287 a month, and that was on 5.05% from May this year fixed to April 2009. That was with a 10% deposit though (28K)

EDITED to add, That is over 35 years, but I am only 25 so I can

gkandr4ch

We are paying £880.00 repayment on a £150000 mortgage. House is worth 180000.
We are on 4.89% fixed for 2 years, ends this year. We have 24 years to go.
We keep buying new houses as everytime we do the developer gives us another 5% deposit paid and other incentives.

RsDarren

iTrader: (1)

I have a £103,000 morgage. We didn't put anything down as a deposit.

With all the insurances and other bit's that go on top I pay £695 a month for my morgage.

That's with Yorkshire Building Society.

gkandr4ch

Is that repayment or interest only?

JohnnyB

only ever to interest only


remember the house goes up, but the amount you owe stays the same.

gkandr4ch

Really!!! That's news to me, we have just bought a new house and in 1 year have actually paid off just under £2000.00.

dojj

iTrader: (3)

i said i was crap with numbers didn't i

but yes he's quite corerct whoever said it's was only going to be £1400 so it'll be £1100 for the other version

gkandr4ch

For people who are having difficulties getting a mortgage eg earning etc I know a very good accountant and mortgage advisor should you wish a mortgage.



PM me for details.

gingeRS

yes that was some really crap maths....thank god you were wrong

nearly had a brown trousers moment there

£2800 for a mortgage

DanS

So glad I took out a five year fixed mortgage when i bought my house! Interest rates have gone up 1.25% since!

Anyway, whilst on the subject....

If i overpay my monthly mortgage by say £100 a month does this directly reduce the capital i owe OR does it work just the same as the rest of my monthly amount I pay where 99% of it goes to paying off the interest?? (I have a full repayment mortgage btw).

gkandr4ch

If you make an overpayment it reduces the capital you owe.

john

My house here i £560 a month, value of £119 k, putdown 10%.

Think that isright im useless wih this stuff.

Bit worried i wouldnt get one as did have no proof of earnings etc but a friend but me in touch with someone local in Doncaster who sorted me staright away. Glad as i wanted a house here before i left to move abroad or something to fall back on.

JohnnyB

repayment is for mugs,

why do you do it, I used to, but don't anymore. I have read loads of books on the subject.

I own 3 houses now all on interest only, buying another next year.

buy a house which is about 20 k less than the market value, then remortage the day you buy it and take the 20k and put it a deposit on another house.

as you are using interest only you can rent it out at a good rate

Smiggy

I'm almost identical to this. Our mortgage is £103k as well

We're paying £671.

Our mortgage is up for renewal at start of February tho so I'll need to start shpping about as well.

Crowder

Mines about 160k over 40 years i think at 750 a month reduced thereafter its 950?! on a house worth 190. 40years sounds harsh but i was 20/21 at the time of taking it out plenty of time to change it

Ginge i thought u said u didnt have a great job how are u going to get a 220k mortgage?

Crowds.

It's Czech Mate

The amount you owe stays the same if the house price goes up on repayment as well as interest only


Interest only is good for making capital gains or rental income, BUT if you're seriously suggesting folks buy a house in the current climate on interest only you're a mentalist........if the prices drop a few percent which is likely you are in negative equity straight away on an interest only and at the mercy of the housing market as to wether you get your equity back.

JohnnyB

yes it may drop so what

you increase the rent to compensate


then as the market picks up you have postive equity then you can pump that money into say your first house to clear some of the debt.


remmeber house prices go up, wages go up, £1 is not worth the same as £1 20 years ago, but the amount you owe stays the same.

Think about it

RsDarren

iTrader: (1)

That's full repayment, it was about £25 a month difference between the two so i thought it would be worth paying it off?

It's Czech Mate

Mate, can you contradict yourself anymore!!!

You say if prices go up , wages go up, so in theory prices down = wages down and yet when prices go down you suggest a rental increase

So in a falling economy you increase the rent

I totally agreed with you about making capital gains etc...but with a repayment mortgage the amount you owe if prices change stays the same as well as interest only. Are you saying it doesnt??????

JohnnyB

how can you wages go down?

there is a thing called inflation,

It's Czech Mate

Wages go down relatively due to that 'inflation' thing

Ex-Finesse

Ask a policeman

Inflation 4% (RPI)

Wage increase 2.5%

It's Czech Mate

Are you just answering your own question or is your logic THAT flawed

ballin

iTrader: (1)

Don't agree that interest only repayment is the best thing to do either, quite the opposite in fact I think interest only is for mugs!

gingeRS

my job pays ok, but i cant get the mortgage alone

i'm buying with my brother....he also doesnt earn lots, he works for the BBC

It's Czech Mate

interest only is good in a rising market to make short term capital gains

Also good for buy to let in a stable/rising market long term

DanS

Any idea how you can calculate what you save over a period?

dojj

iTrader: (3)

having watched loads of telly and being crap at maths, this is my take on the matter

if you go for intrest only you need to be thinking about jumping ship fairly early or keeping the house long term
this business of keeping it for a while and then floging it off will just get you taxed to death
and you need to make the house make you money when you come to sell it, because if the prices are stagnant then you'll be screwed because you'll have spent your money paying out on it and not had a return

and this buy to let stuff has had it's time as well i reckon, if you can afford to pay a grand a month to rent, you can afford to pay a grand a month to pay the mortgage and lots of peole are seeing this now as well

and if you put the prices up, they move soemwhere else so you are doubly fucked

it's all gone well so far for a lot of peole, and a lot of peole, on paper, are property millionaires, but whe it comes to flogging the stuff off, expecially with intrest only, you've got to think about the ammount of money the tax man is going to take from you when you start selling all 10 of your houses
and you can't leave them to your wife and kids because they are still going to get taxed for it

which is why me and my brother went halves on buying a hosue with full repayment, and then, when he finds somewhere to live, we'll go halves on that as wll and he can rent his other bit out to help out

there is a lot of talk floating about as to the why's and what's but all the programes you see on the telly, the peole who have made the money are the ones who bought ages ago and have fuck all else to spend money on, and money makes money so they jumped onto that particular bandwagon and have been rolling in it ever since, but trying to get onto the ladder now, without having the backing of a fully paid off house to fall back on is a mistake as far as i'm concered

and yes, i'm bitter about not having spent all my £300k and bought 3 houses back in the day all them 15 years ago

JohnnyB

[quote="Mondeo Manns

Also good for buy to let in a stable/rising market long term[/quote]


you seem to have answered correctly

JohnnyB

http://www.andyshaw.com/

dojj

iTrader: (3)

don't know how it works in other places, but eh letter we got the other day telling us about the rate drop staetd that interest was calculated on a daily basis and if we paid more in we would have less lump sum to pay intrest on and that would mean either reducing the payments over the same period or reducing the priod and keeping the payments the same